Controversial Change in Microsoft's EULA

Microsoft was in the spotlight last week with a controversial change to its End User License Agreement. The agreement reads:

Sometimes you’ll need software updates to keep using the services. We may automatically check your version of the software and download software updates and configuration changes, including those that prevent you from accessing the Services, playing counterfeit games, or using unauthorized peripheral devices. You may also be required to update the software to ontinue using the services.

However, this isn’t tied to Windows 10 directly. It does cover a large range of services, though, including Microsoft Account, Cortana, and Xbox Live. This is not necessarily a bad thing, since with this power, Microsoft can shut down pirated games easily.

But privacy is an issue. Microsoft can now scan your entire computer, and even make changes to your software. Spooky, right? Oh wait, there’s more. Microsoft hasn’t clarified what it means by “unauthorized hardware,” so it could be anything. Does the company want to disable modded controllers and those made by third party services? Maybe so.

Keep in mind, Microsoft has every legal right to create this new EULA, but is it ethical? This system seems awfully helpful to Microsoft making a few extra dollars at the cost of a user’s privacy. What do you think? Let us know in the comments below!

All of this reads to me that Microsoft can only do anything about first party software.
So the hardware would only be when used with their games, and the anti-piracy would be with their software.
Often companies only cover themselves, and their property. And any 3rd party stuff they ignore, and leave it up to that 3rd party to deal with.